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Don't Make This Pricing Mistake: How to Price Your Products & Services

3018 ratings | 178820 views
This is the dumb pricing mistake entrepreneurs make. Now I'll show you how to fix it. SUBSCRIBE FOR MORE ► http://bit.ly/WqPFyy There's a dumb pricing mistake people make when they price their products and services... ...and it leaves a TREMENDOUS amount of money on the table. (The weird part? This applies to all types of products. Maybe you're selling a piece of furniture... or you'er selling multiple crafts at a craft show... or maybe you're a freelance photographer or web designer...) What is the mistake? Watch this video and I'll explain everything. The best part? Once you know the mistake, it's easy to fix it. Don't take my word on it. Watch the video. See for yourself. This takes advantage of proven psychological pricing strategies. It works for physical products - like crafts, handmade furniture - and for freelance services - like photography, web design, consulting. Oh, and if you liked this video, HIT SUBSCRIBE! http://bit.ly/WqPFyy
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Text Comments (147)
Derek Halpern (1 year ago)
Hey, Derek Halpern here. Hope you liked this video about pricing strategy for physical products and services. If you want to learn more, do me a favor? SUBSCRIBE TO MY CHANNEL. Thank you! http://bit.ly/WqPFyy
Jesus Aguilar (27 days ago)
Ay pay attention! Lol 🔥🔥🔥🔥
Ghaida alatiwy (2 months ago)
How can be that implied for startups with one single tangible product ? please replay
David Wood (2 months ago)
Excellent advice thank you
MJ MEDIA SA (4 months ago)
Sergio Ortiz (4 months ago)
4:55 Don’t like the video make love to the video
Judgn (6 months ago)
White version of daymond John
Chawanne Burns (7 months ago)
Thank you for this video!
brendah bannex (8 months ago)
wouldn't have paid attention if you didn't scare me with *hey pay attention* thanks Deryk. the 3 package idea is amazing
Kerrick Smith (1 year ago)
Good info! Thanks!
Marketer monk (1 year ago)
Very good job
Marvin Sandino (1 year ago)
Thanks for the great video. I’m in the business of selling dog food, and trying to sell three options by weight (selling 2lbs, 1lb, half a pound). Can this work for my food?
Focus Your Audio (1 year ago)
Yes!!!!! Great idea!!!!!
Dan Mannon (1 year ago)
I was literally just starting to zone out when he snapped his fingers and said "pay attention". LMAO. Nice timing dude.
Rick Henderson (1 year ago)
Interesting work Derek. I've seen your work from a wordpress theme I think it was. Wow... old video. Anyway, hard to know how to create those packages and what to include. Something to think about.
LaToya Lewis (1 year ago)
How do you do this with clothing?
Derek Halpern (1 year ago)
Well, think about lines of clothing... Some people have higher end brands. Some people have lower end brands. One could be "made to measure." One could be "off the rack."
Barawa Update (1 year ago)
I;m a freelancer and i know my prices and my bills plus i work by the hours and i discount down the price to the customers yet their still complain. People don't like to spend money they expect a free especially if you're a smart guy with I.T skills they say it cost you nothing so why should i pay you that much price...? Time is money and i need to grab what i can if it will cost me to loss 100$ bucks to own few bucks why not it's better than getting 0$
Ibrahim Bahakim (1 year ago)
I just adjusted my price hoping it will sell. I used to put just 3PCs for 10SR. Now I added two more offers that goes up to 20PCs for 30SR.. I really hope it works! I am a recently-graduated student who wishes to be a great businessman, so if any advice please tell me! ^^ Thanks
xI777Ix (1 year ago)
This is true and it is an extremely well and long time known approach. For example, all big brands of food and rink products utilize it by introducing products on the market that serve only this very reason to act as a vehicle to focus customers on another product. However, your example is very specific and therefore will hardly be applicable to many people because not everyone can offer work in "packages".
Raflm (1 year ago)
At 0:49 I was looking at my phone. Damn man.
Dexter Bartis (1 year ago)
Renee Conn (1 year ago)
Love this video! Cheeky as usual. I like this color and style of shirt and your hair is great too, boyish, bookish.
Amaan Talha (1 year ago)
Great Sir......thanks
Rozli Yusof (1 year ago)
yeah i was turning to watch tv and got shocked haha
Corbin McCabe (2 years ago)
Derek. Loving your content and this tip is GOLD. Creating my first course now and I'm going to follow your advice here. Thanks!
Danny Milivojevic (2 years ago)
italia mate
LagiNaLangAko23 (2 years ago)
Wow, he looked really young in this vid.
forevaayoung (2 years ago)
Great, thank you :)
Gus Y (2 years ago)
Great info. Just Subbed and will share the video. Thanks.
Big$MoneyBoss (2 years ago)
0:47 I thought he came alive lol because When I went to look at the comments he said that
Shiwangi Rai (4 months ago)
Big$MoneyBoss Same😭😂😂
Nameen Azeem (1 year ago)
same here xD
Danielle Pascal (2 years ago)
This is the opposite with food and drinks right? Don't stores price their smaller sized beverages cheaper to make the bigger sizes look more worth it?
thedon008 (2 years ago)
But the price you pay for the smaller bottles ends up being more percentage wise compared to the big bottle. So even if you don't need the big one, you'll get it 'cause it has a better value and they make more money off of you since the product is much cheaper to make.
ProtonCannon (2 years ago)
3:28 "You don't want someone telling you how much you are worth!" What do you mean with this? This is how reality works. You only worth as much as other people are willing to pay you. It is that simple.
lucas js (1 year ago)
Then it means your product sucks
ProtonCannon (2 years ago)
I don't have a choice, if a client doesn't want to pay as much as I want he will simply not do it, and the story is over he keeps his money and I can't sell. I don't have any power to tell my client how much he will pay me, only he alone determines that.
DB Shaw (2 years ago)
So you let your clients decide how much they want to pay you? I think you should go work for someone instead if that's what you mean cuz you'll never make any money.
C. DeCalongne (2 years ago)
You still don't get it. He's teaching how to control the process.
Mathieu Powell (2 years ago)
I like Derek. He's fun and full of energy... And he has some good ideas for online course pricing. Worth following.
B YENZER1 (3 years ago)
Koen Vanhoutte (3 years ago)
This immediately made me realise that I should dump my sales strategy that I was going to use for selling my pondsludge vacuum machines (yes, I know, they have a cool name to avoid this 'word'). Thanks
Done Dumi-Leslie (3 years ago)
I thought everyone did this.
Roberto Rios Orozco (3 years ago)
The "pay attention" worked.
Sabrina bree Serigne (6 months ago)
Sure did i was scrolling thru the other videos and looked up .lol
Mercy John (1 year ago)
worked on me damn!!😂😂
Uriel Risher (1 year ago)
it caught me too
Relief Warrior (1 year ago)
I was freaked out b/c I was distracted by the list of other videos and was adding it to watch later and he said that. I really thought he could see my eyes shift away or something. Hahaha
Barbi Kvisz (1 year ago)
Roberto Rios Orozco same !!! I was actually looking away hahaba
audrey onyango (3 years ago)
lololol....pull a figure out of a damn hat. hahahahah
DollarsUK (3 years ago)
At first, didn't think I was going to like this. Brilliant video mate love it
August Glitters (3 years ago)
it really helped me. I just started my business .... N ur video is great wisdom .... ! thank u
Kangkan Paul (3 years ago)
useless ...
cliff Brown (1 year ago)
Kangkan Paul Jim
Kangkan Paul (3 years ago)
useless ...
Selfless Resurrection (3 years ago)
Haha, this is what I do for Ebay. If I see a crappy priced item that I didn't post I will post my item at a less of a crappy price but still crappy in my opinion.
Karabo Thahane (3 years ago)
Hi Derek, great video. Please be my mentor... haha!
Inthe Garbage (3 years ago)
0:12 AAAAAAAAAAAH!!!!!!!!!
Simeon G. Prince (3 years ago)
hey +DerekHalpern , first time I've watched this video. However, based on previous advice just like yours, I actually made separate packages for my most expensive service - Web Design. Here's what happened... A client of mine referred me to a prospect, I had a phone consultation with him before giving price. I made 3 packages and then emailed him the quote. Although, he's a small business owner as well, he chose the most expensive Web Design Package I currently have. I closed the deal, and I'm working on it. Your advice is excellent in this video, plus you gave me extra details on the psychology behind the pricing of my packages. All I have to say is, Thanks, and this technique works.
It was very hard to get past his over exaggerated expression, highs and lows in his voice, and poor use of comedy, and camera cuts.
Big Stompy Robots (1 year ago)
...then don't watch?
Roy McKenzie (3 years ago)
Fran Carstens (3 years ago)
Oh my word, I just looked away from the video to do something else and then this happened: https://youtu.be/yiYvUqCpu-k?t=47 I nearly fell off my chair.  Thank you.
William Gosal (3 years ago)
Ty for your tips bro. I will succeed and buy you a coffee for that. Thank you.
Rick Bolufe (4 years ago)
how do you insert a video intro in middle of video like your video above? example:  you start talking, then video intro, then the rest of the video... Thx, Rick
Ira Ga (4 years ago)
Awesome video Derek. Thanks man.
Juan Galati (4 years ago)
Quick question, how do you figure out your highest price? Is there some kind of % that should be applied or you just have to kind of figure it out? In this example it was:  10 15 -> + 50% 40 -> + 266%  Any input would be great. Thanks!!
MyOnlyFarph (4 years ago)
We should also mention the potential downside that some customers will see the highest price and feel you're out of their range. Instead of getting your best package, they have to settle for your supposedly mediocre work. Best strategy may be to pump your highest package full of unnecessary gimmicks, bells, and whistles. That way they don't conclude that you're merely overpriced. 
MyOnlyFarph (4 years ago)
This is like the oldest trick in the book. I hate how so much of business is simply manipulation. The last thing businesses want are rational costumers who see through these games.
Hi, nice video. Not only hte content, but I also love the presentation. Can you, please, write down what the study is that you are referring to in the video. I can't quite get it right by ear
Troy Mathis (4 years ago)
Excellent strategy. I'm loving this video already.
Moana-Marie Nazareno (4 years ago)
I love the ideas that you shared in this video, but I'm a little stuck as to how to apply this to a website where I sell handmade jewelry for $10-$30 a piece.  Do I simply make sure that visitors to my site know that there are similar items available at a different price?
Carlton Seymour (3 years ago)
+Moana-Marie Nazareno Tier pricing can definitely assist. If you need any assistance more than happy to help. you can get in touch directly on [email protected]
seigeengine (4 years ago)
My opinion: You could create higher end jewellery, either by increasing complication, the material costs (using higher-end materials), and tossing in a higher mark up. Just having a few examples of that work around should not only draw in some more money whenever they do sell, but have the effect mentioned in this video on your regular jewellery.
Diego Arana (4 years ago)
Dis Chris help you make this video?
Robert Schulz (4 years ago)
Great tips Derek. Thank you.
juan madera (4 years ago)
this is  Really Happen...
Smoke Stacks (4 years ago)
So what happen to other higher price range? How do you sell it off?
Smoke Stacks (3 years ago)
Uh...are you for homie?
Joel Marcy (3 years ago)
+John Smith uh.... watch the video again but pay attention this time
TheSketchMonkey (4 years ago)
This is GOLD
melanie mediate (4 years ago)
marry me you're genius
cowchipsbotme (4 years ago)
Question: In this video you suggest having three pricing options, but in your video about getting clients to buy now rather than shop around, you suggest offering two packages as optimal. Is there a tradeoff here that we need to take into consideration, such as possibly less individual sales, but more money? How would you reconcile/clarify this for us? Or am I misunderstanding?
Alice Grieb-Young (5 years ago)
Love the video Derek. Thank you. You are so right. Love it. Love you too. x
Kymmberly Gail (5 years ago)
Thanks for sharing this. This is great advice that can be implemented pretty darn quick.  As soon as the larger package is created to be precise. love it
Cedric Debono (5 years ago)
Eye-opening. Thanks Derek.
anon94707 (5 years ago)
would love to hear back in 5 year from all the people who think this is a good idea.
Gerell Troche (5 years ago)
You know what, I hate subscribing to YouTube videos. I have enough already. But damn man, you're a great source of free information. Thank you, i went through almost all of your videos before noticing that i might as well subscribe. Keep it up!
Easton Hunter (5 years ago)
I love this! I was just putting together prices for new products when I came across this vid. Great insights that I'm definitely going to implement immediately. Thanks. 
Jimmy Naraine (5 years ago)
Great video - you definitely have a lot of value to offer. Thanks man. 00:46 - EPIC moment!
Allen Underwood (5 years ago)
Fantastic video Derek. I just recently listened to your interview with Pat Flynn and loved the content. This was equally as good - great tips. Thanks man.
funnelscience (5 years ago)
Take A/b testing beyond your webpage and into your business model. This video provides invoking thoughts that should be shared among entrepreneurs.
Andrew Burbidge (5 years ago)
What do you think of this pricing-related theory? Price of goods in the USA compared to the EU: The Gini coefficient gives a measure of the income distribution of a nation's residents. Generally, Europe has more even wealth distribution than the USA. (Search for map.) That probably influences the prices of goods because less people in the USA would have the means to buy expensive goods and the maximum profit on an item would be at a lower price point.
David Sepúlveda-Low (6 years ago)
shutDadoe (6 years ago)
when you said pay attention i was opening another tab...
vindee (6 years ago)
I do freelance graphic design. After watching I sent a client 3 packages- $1000, $1500 & $3000. I got the job to do work @ $2000. Thing is I don't if the customer would have still agreed if I did not send those package options. If just quoted flat $2000 how much more likely would they have agreed. Anyway I played it safe and used your info.
Nifty Nifty (6 years ago)
Great video, fabulous personality and you honestly make me want to watch all your videos. I could not find where to sign up for you Newsletter? I would like to.
CodeWithChris (6 years ago)
It really freaked me out because at that exact moment, i was looking below the video to "like" it and then Derek called me out. It was unreal lol
CodeWithChris (6 years ago)
Thanks Derek, i just subscribed. This information will be really helpful when i create my iOS starter kit products in the future!
George Hampton (6 years ago)
Love the video - I've sent it on to some people. It's really well delivered, and easy to understand.
Dimitie Kendall (6 years ago)
This is great info yet again! Many thanks
Trevor K (6 years ago)
Over confident, I stopped watching it. Why do you have to over mouth everything you say.?
Anan Anwar (6 years ago)
I looked for this after watching you on creativeLIVE. Subscribed.
Ameer Rosic (6 years ago)
Good video, Good Tips. keep it up.
Mike Hixson (6 years ago)
This is so true, I use three price points in sales presentations all the time. I use the middle option for what I want people to choose and they almost always take it!
Ram Shengale (6 years ago)
wtf... when you said "hey! pay attension" I was thinking of something else and your statement got me back.. haha..
Tishauna Mullings (6 years ago)
Love your content...a few conceited statements here and there...but the point is, you have great content!
Cam Neuhauser (6 years ago)
At our school store we mark up our prices 30%
one of the best videos I have watched online #shared
Kimberly Ann Jimenez (6 years ago)
WOW WOW WOW this video couldn't come at a better timing. I think you just saved our business :) Thanks so much
Jorge Guerrero (1 year ago)
What business do you run?
Dean Ethridge (6 years ago)
Your videos rock! Great job. How are you moving all the clips around? Thanks for the great content
angela4design (6 years ago)
This is great advice, and I've implemented this as Bronze, Platinum and Diamond Level strategies. Few want "Bronze" Level, as that implies 3rd place. "Platinum" is great, but what can beat a Diamond? It cuts through everything! People like to BUY, but not to BE SOLD, and offering options is a great way to leverage that solution.
Robert Richman (6 years ago)
Great video. You're like Gary V meets Ryan Lee.
Vitoria Castro (6 years ago)
Great Job Derek! So much fan when you were "pretending" being distracted :)
Anouar Tahiri (6 years ago)
Yeah, I actually got distracted right before it. Timing couldn't be better, I burst into laughter hahah
xBeau Gaming (6 years ago)
Shared this around as its really good! Wonderful content and great work buddy
Carey Baird (6 years ago)
So spooky.. the exact moment 00:46 i flicked tabs in Firefox Derek says "Hey, pay attention!" :O
karinAhagelin (6 years ago)
Brilliant, fun and VERY useful. Many many many thanks Derek, I'll go my merry way and create 3 packages TODAY!!!
Andrew Chainey (6 years ago)
How do i price: I understand the client, understand if they actually know what they want. I have a price for time. But i understand exactly how much time is needed - prep, research , staff costs, the quality of the product the client needs, thinking time, invoicing time.

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